May 09, 2008

Response to consultation on review of existing legislation on VAT reduced rates_May2008

Pearle* welcomes the proposal of the Commission to include the ësupply of services of promoters and organizersí in the live performance sector in the list eligible for VAT reduced rates. This could help clarifying the application of VAT regulation in many Member States. However,on the other hand, clarification is required on the concepts of locally supplied services and labour-intensive services, in particular on the relationship and possible overlapping between the different types of services: admission to shows ñ services from artists ñ services from promoters and organizers.
Pearle* invites the Commission to also consider the possibility for EU-VAT registration number for all performing arts organizations : in particular for those that are exempt in their home country, but are subject to VAT in other EU Member States.
Pearle* calls upon the EU Member States to end the discriminatory situation for non-resident artists and performing arts organizations, to whom VAT-exemption applicable for resident live performance services, is not extended. This would be in line with the provisions in Article 13A(n) of the Sixth VAT directive.

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